Pakistan’s trade deficit with nine neighbouring nations widens 30% to $15.93 billion in FY26

Pakistan’s trade deficit with nine neighbouring countries widened by 30% to $15.933 billion in FY26 from $12.256 billion a year earlier, according to data compiled by the State Bank of Pakistan.

Exports to Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives fell 11% to $3.953 billion from $4.443 billion in FY25. Imports from the same countries increased 19.1% to $19.886 billion from $16.699 billion.

The widening gap was driven mainly by higher imports from China and lower exports to Afghanistan, Bangladesh and Sri Lanka. Pakistan’s trade with Afghanistan, including exports, has remained suspended since October 10, 2025.

China accounted for 68% of Pakistan’s exports to the nine countries and 98% of its regional imports.

Exports to China rose 8.4% to $2.684 billion from $2.477 billion, while imports increased 19.8% to $19.538 billion from $16.312 billion.

Exports to Afghanistan plunged 68.9% to $243.693 million from $783.945 million. Imports from Afghanistan declined 74.9% to $6.497 million from $25.898 million.

Pakistan’s exports to Bangladesh fell 9.3% to $715.589 million from $788.970 million, while imports declined 14.2% to $67.154 million from $78.312 million.

Exports to Sri Lanka dropped 22.8% to $293.376 million from $379.822 million. Imports from the country rose 14.1% to $68.151 million from $59.731 million.

Exports to India increased 104% to $2.926 million from $1.429 million, although the rise remained small in absolute terms. Imports from India fell 7.6% to $168.730 million from $358.936 million.

Pakistan conducts trade with Nepal, Sri Lanka, Bhutan, Bangladesh and the Maldives mainly through maritime routes.

In FY25, the country’s trade deficit with the same nine markets had increased 29.42% to $12.297 billion from $9.502 billion in the preceding year.